Analyst Constantine Davides of JMP Securities reiterated a Buy rating on OptimizeRx (OPRX – Research Report), retaining the price target of $8.00.
Constantine Davides has given his Buy rating due to a combination of factors that highlight OptimizeRx’s strong financial performance and strategic initiatives. The company reported impressive fourth-quarter results, with revenue surpassing expectations and a significant year-over-year increase in adjusted EBITDA, driven by strong gross margins. These financial achievements reflect the company’s ability to effectively manage its operations and capitalize on growth opportunities.
Additionally, Davides notes the positive momentum in OptimizeRx’s DAAP business, with a substantial number of deals signed and closed in 2024. The transition towards a subscription-based model for the data component of DAAP is expected to enhance financial predictability. Furthermore, the company’s efforts to achieve the Rule of 40 through top-line growth and margin expansion, along with improved revenue visibility and a strong customer base, contribute to the optimistic outlook. These elements, combined with a solid balance sheet and positive cash flow, underpin the Buy rating.
In another report released today, Roth MKM also reiterated a Buy rating on the stock with a $16.00 price target.